Bill Text: CA AB656 | 2015-2016 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Joint powers agreements: mutual water companies.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2015-09-03 - Chaptered by Secretary of State - Chapter 250, Statutes of 2015. [AB656 Detail]

Download: California-2015-AB656-Introduced.html

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BILL NUMBER: AB 656	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Cristina Garcia

                        FEBRUARY 24, 2015

   An act to amend Sections 990.8 and 6525 of the Government Code,
relating to local government.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 656, as introduced, Cristina Garcia. Joint powers agreements:
mutual water companies.
   The Joint Exercise of Powers Act authorizes 2 or more public
agencies, as defined, if authorized by their governing bodies, by
agreement to jointly exercise any power common to the contracting
parties, and specifically authorizes a mutual water company to enter
into a joint powers agreement with a public agency for these
purposes. Existing law authorizes local public entities, as defined,
to enter into a joint powers agreement for the purposes of providing
risk-pooling, as specified.
   This bill would specifically authorize 2 or more mutual water
companies, or 2 or more mutual water companies and one or more public
agencies that operate a public water system, to participate in joint
powers agreement for risk-pooling, technical support, and other
similar services.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 990.8 of the Government Code is amended to
read:
   990.8.  (a) Two or more local public entities,  two or more
mutual water companies, or two or more mutual water companies and one
or more public agencies that operate a public water system, as
authorized under subdivision (b) of Section 6525,  by a joint
powers agreement made pursuant to Article 1 (commencing with Section
6500) of Chapter 5 of Division 7  ,  may provide
insurance authorized by this part or for any other purpose by any one
or more of the methods specified in Section 990.4. Where two or more
hospital districts have joined together to pool their self-insurance
claims or losses, any nonprofit corporation created pursuant to
subdivision (p) of Section 32121 of the Health and Safety Code, and
affiliated with a hospital district which is a party to the pool may
participate in the pool.
   (b) Two or more local public entities having the same governing
board  , two or more mutual water companies, or two or more
mutual water companies and one or more public agencies that operate a
public water system, as authorized under subdivision (b) of Section
6525,  may be coinsured under a master policy and the total
premium may be prorated among those entities.
   (c) The pooling of self-insured claims or losses among entities as
authorized in subdivision (a) of Section 990.4 shall not be
considered insurance nor be subject to regulation under the Insurance
Code.
   (d) Any liability or loss under a joint powers agreement for the
pooling of self-insured claims or losses authorized by this part and
provided pursuant to this section may, notwithstanding Section 620 of
the Insurance Code or any other provision of law, be reinsured to
the same extent and the same manner as insurance provided by an
insurer.
   (e) Where a joint powers agreement authorized by this part or
authorized pursuant to Section 6516 provides for the pooling of
self-insured claims or losses among entities, if any peril insured or
covered under contract has existed, and the joint powers authority
or other parties to the pool have been liable for any period, however
short, the agreement may provide that the party insured or covered
under contract is not entitled to the return of premiums,
contributions, payments, or advances so far as that particular risk
is concerned. 
   (f) For purposes of this section, "mutual water company" has the
same meaning as the term does in Section 14300 of the Corporations
Code. 
  SEC. 2.  Section 6525 of the Government Code is amended to read:
   6525.   (a)    Notwithstanding any other
provision of this chapter, a mutual water company may enter into a
joint powers agreement with any public agency for the purpose of
jointly exercising any power common to the contracting parties. 
   (b) Notwithstanding any other provisions of this chapter, two or
more mutual water companies, or two or more mutual water companies
and one or more public agencies that operate a public water system
may enter into a joint powers agreement for risk-pooling and the
provision of technical support, continuing education, safety
engineering, operational and managerial advisory assistance to be
provided to the members of that joint powers agency.  
   (c) For purposes of this section, "mutual water company" has the
same meaning as the term does in Section 14300 of the Corporations
Code.